U.S. accounting proposal could widen corporate stablecoin use

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US accounting could boost stablecoin use

Highlights

The FASB's proposed update would allow certain stablecoins to be classified as cash equivalents, easing treasury management for corporate holders.
Eligibility for the new accounting treatment requires direct redemption rights with issuers, as demonstrated by Coinbase’s reporting of USDC in its 2025 annual report.
Combined with the GENIUS Act taking effect in January 2027 and a $300 billion stablecoin market, regulatory and accounting changes could accelerate U.S. corporate stablecoin adoption.

FASB proposal reshapes treasury treatment

As reported by Cointelegraph, a new report from Stripe-backed blockchain Tempo says a proposed Financial Accounting Standards Board update could remove a key obstacle to corporate stablecoin adoption. The proposal, issued in August, would allow qualifying stablecoins to be classified as cash equivalents, rather than assets that may not count toward reported cash reserves under current accounting treatment.

Tempo says that distinction matters for companies managing treasury operations, because stablecoin holdings can affect liquidity metrics and loan covenants even when the tokens are fully backed by dollars. If the rule is adopted, companies could use stablecoins for payments and settlements without the same accounting friction.

The report says eligibility would depend on direct redemption rights with the issuer. Tempo notes that buying USDC through an exchange would not automatically qualify the holding as a cash equivalent, and points to Coinbase's 2025 annual report, where USDC and other payment stablecoins were classified that way based on its redemption arrangement with Circle.

The proposal remains open for public comment until Nov. 19. FASB will then review feedback before finalizing the accounting changes and setting an effective date.

Regulatory backdrop supports market expansion

The accounting proposal follows the July 2025 passage of the GENIUS Act, which created the first comprehensive federal framework for payment stablecoins in the U.S. That law is due to take effect in January 2027, or 120 days after regulators finalize implementing rules, whichever comes first.

While the GENIUS Act sets requirements for issuers, including reserve backing and redemption obligations, the FASB proposal focuses on how corporate holders record stablecoins on their balance sheets. Together, the two developments could make stablecoins more practical for mainstream business finance if accounting and regulatory rules align.

The backdrop is a fast-growing market for U.S. dollar-backed stablecoins, which has surpassed $300 billion, according to DefiLlama data cited in the report. Bloomberg also reports that the Trump administration is considering partnerships with private companies to develop stablecoin projects overseas, a move that could support the dollar's reserve-currency role.

Major U.S. banks’ upcoming earnings and the options market’s implied post-report moves were the focus of our earlier article, highlighting how investors were positioning for uneven reactions across lenders. We also noted that elevated interest rates and consumer credit risks were key swing factors for the sector, alongside specific bank backdrops such as Citigroup’s efforts to exit consent orders.

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